EU on verge of mortgage accord

People looking for mortgages in future will be subject to much tougher scrutiny to ensure they can afford the repayments, under new legislation shortly to be agreed by the EU.

Designed to address some of the irresponsible lending and borrowing that has helped fuel the economic crisis, especially in Ireland and Spain, it should also create greater competition across the EU in the residential mortgage market worth 6 trillion, or 50% of EU GDP.

The directive is in its final stages of being agreed, with Irish civil servants hoping to conclude the negotiations on behalf of the EU member states with the Parliament tonight.